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The Colorado State Legislature Passed House Bill 17-1002 : The Child Care Expenses Tax Credit Essay

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In 2014, the Colorado state legislature passed House Bill 17-1002 - the Child Care Expenses Tax Credit. This bill was aimed at alleviating the exuberant costs of child care in the state by providing a small, flat-dollar tax credit to low-income, working families. Families must meet several qualifications to receive the credit in its current form: they must be making less than $60,000 per year, they must have at least one child receiving child care services from a licensed provider in the state of Colorado, they must file a federal tax return, and they must provide the proper documentation stipulated in their taxes. The credit offers these families a sum of $500 for one child receiving care or $1,000 for two or more children receiving care. This credit is available to low-income, working families separately from the more-sizable, federal child care tax credits already in place, meaning that families who meet eligibility requirements for both credits may receive both without penalty. There are some problems with the bill in its current form. The most notable issue comes from the fact that many families earn less than $25,000 per year, and do not file a federal tax return. These families are, thus, unable to receive the credit that they are eligible for, further increasing the burden they face in terms of the costs of childcare. There is also the fact that families with more than two children who currently receive child care, do not receive a proportionate amount of credit

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